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Is Cyber Insurance Right for Your Business?

When you think about protecting your digital assets, what comes to mind? Customer databases, accounting spreadsheets, and banking information are three of the most common pieces a company focuses on protecting. But what about internal and external emails? Smartphones and Laptops? Logins for third-party websites like Social Media accounts?

Nearly all businesses have moved to the digital front with at least part of their day-to-day operations. It becomes so commonplace that oftentimes we don’t consider the ramifications of stolen information or technological interruptions. But if your company utilizes any of the above, cyber security insurance is a must.

The first step in managing cyber security is identifying the potential risks and exposures in your business’s daily use. Some of the factors rated are:

  • Network Security: The strength of the organization’s network infrastructure and whether security best practices are deployed. Such as encryption, up-to-date patching, and threat mitigation.
  • Cloud Security: The strength of an organization’s cloud security based on practices and footprint on cloud storage (i.e., AWS, Azure, GCP, Box).
  • Funds Transfer: Risk markers related to the hacking of email and phishing that commonly leads to nefarious activities such as funds transfer.
  • Compliance: An organization’s level of compliance to security standards such as CIS benchmarks, NIST CSF (Cyber Security Framework), and HIPAA.

 

Based on the risk scores, the next step is to determine the coverages your company requires. These may include:

  • Security Breach Expenses: Coverage for losses and expenses directly associated with recovery activities in the aftermath of a cyber incident.
  • Restoration of Electronic Data: Covers costs to replace or restore electronic data or computer programs, including data entry, reprogramming, and computer consultation services.
  • Telecommunications Fraud: Covers the cost of unauthorized calls or unauthorized use of the insured’s telephone system’s bandwidth, including but not limited to phone bills.
  • …and more.

Cyber security policies are not one size fits all. Together, we’ll tailor a plan that fits your business needs. Call today for a consultation on a cyber security policy that could protect your company’s future.